At the May meeting of the Board of Regents you approved
changes in the high school honors scholarship program with the understanding
that I would need to develop a financial plan to implement the changes. The most important change was to make the
award more attractive by making it renewable for up to four years for students
who continue to meet the standards for high academic performance.

Part of our plan has been to approach the Legislature for
funding for this program. However,
given the state’s fiscal condition and the relatively cool reception this idea
received during the 2001 Legislature, we do not believe there is much
likelihood of additional funding for the program.

Therefore, we have turned to other approaches. I am pleased to report that I have now
worked out a plan with the CEOs of our four-year campuses to achieve our goals
even if we are not successful with the legislature. In brief, we will cover the second year of the scholarships by
reducing the number of scholarships we award by about half and making the award
a set amount of $2500. Instead of
offering these students fee waivers as we currently do, the campuses will bill
the students for tuition and subtract from the bill the value of the
scholarship.

The Presidents and Chancellors have agreed that they will
assume the responsibility for assuring that these recipients will have the
scholarship continued for the third and fourth year out of existing or newly
raised private and corporate contributions for scholarships. We will also regularly raise the value of
the scholarship by at least dollar amount of tuition increases so as to ensure
that the value of the award does not deflate.

We believe that we can make these changes in this program
effective with the awards made for students beginning in the Fall of 2004.